1065 sch k-1 Ownership % change due to buyout

[DarinB7493]

I've got an LLC partnership with 3 owners.  One owner was bought out by the other 2 owners.  In Pro Series, Sch K-1 Wks, beginning Profit, Loss and Ownership was 33 1/3% for each owner.  Ending Ownership needs to be 50% for the 2 remaining owners.  When I zero out the percentages for the leaving partner I get an error saying the Intl/Fnl Profit % should be "populated with the percentage that existed immediately prior to the partner's termination."  That would be 33 1/3% but if I enter that in the Intl/Fnl % box the owner's K-1 shows an ending % of 33 1/3%, and it should be 0%.  I've checked the 'Sale' box and while the profits and other deduction items are not being distributed to the leaving partner's K-1, it seems misleading that the ending Profit, Loss and Ownership %'s still say 33 1/3%.

Anyone else seen this?  Is it ok that the ending % still shows 33 1/3%?

[sjrcpa]

 I get an error saying the Intl/Fnl Profit % should be "populated with the percentage that existed immediately prior to the partner's termination." 

That "error" comes right out of the 1065 instructions.

[dd4vols · Accepted solution]

did you do the date of change stuff on the "Addl K-1 Info"  worksheet?

[DarinB7493]

Thank you!  Yes, I have the date input for the weighted average computation, and everything is flowing to the K-1's correctly as far as the income and deductions, etc., even though the Ending % on the partner who left still shows 33 1/3%.  Guess I expected the Ending % to be 0% since that what it was on 12/31/24.

[dd4vols]

it's the same thing as @sjrcpa stated above about 'immediately prior to termination). The first few times I had a mid-year termination, and did all the right stuff on that "Addl k-1 Info wks" I would see the original % still showing up and freak.  But I've gotten used to it now and accept the answer of those with much higher brainpower. (don't like it, but there has to be a reason in the depths of the tax code for showing it that way)